Business briefs

Sears proxy spells out ceo's compensation

After Sears, Roebuck & Co. failed to meet its earnings targets for last year, chairman and ceo Alan Lacy's bonus was cut by 35 percent, to $670,000, a drop of $370,000 from the $1.04 million bonus he took home the year before.

But taking some of the sting out of the lower bonus, Lacy got a 33 percent increase in his base pay, bringing in $900,000, the nation's fourth-largest retailer said in the proxy statement for its annual shareholders' meeting.

In addition to his base pay and bonus, Lacy was granted options for 369,000 shares of Sears stock.

The Sears proxy stated: "The company's earnings per share for incentive purposes was between the threshold and target levels of performance. Accordingly, Mr. Lacy's 2001 annual bonus was also between the threshold and target levels."

Mohawk to raise $600 million through offering

Mohawk Industries, a rapidly growing carpet and home fashions producer based in Calhoun, GA, said it has set out to raise about $600 million through the private placement of senior notes.

The company said completion of the offering is expected next month, subject to market conditions.

Polymer Group to get investment to lower debt

Polymer Group, the North Charleston, SC-based producer of specialty nonwoven fabrics, has laid out plans for a restructuring program that would reduce the company's debt load by more than $550 million and bring in a cash investment from a distressed debt fund.

Shoring up the company's finances, CSFB Global Opportunities Partners L.P., a distressed debt fund, would invest $50 million in cash and provide a $25 million letter of credit. It will also take a controlling equity stake in the fabric producer, converting about $394.4 million in Polymer senior subordinated notes, about 67 percent of all outstanding notes, into equity. Once the deal is done, CSFB will own 87.5 percent of the fabric producer, while current shareholders will retain a 12.5 percent stake.

As part of the plan, Polymer is also offering to exchange all of its remaining senior notes for new notes due in 2008. The company is currently in default on interest payments on its current notes.

In addition to the deal worked out with CSFB Global Opportunities Partners, Polymer is in talks with lenders to amend its existing credit facility.

The deal would wipe about $550 million in debt off the troubled company's balance sheet and increase shareholder equity by a corresponding amount.

A special shareholders meeting will be held at a later date to authorize the issuance of 22.4 million new shares of stock to the mutual fund and authorize a 1-for-10 reverse stock split.

Galey & Lord gets DIP approval

Bankrupt fabric producer Galey & Lord has received final court approval of its $100 million debtor-in-possession financing pact.

The Greensboro, NC-based fabric producer also received bankruptcy court approval to continue to pay severance to employees laid off prior to the company's Chapter 11 filing in February. It also received the court's green light to continue making contributions to its pension plans.

Art Weiner, chairman and ceo, said, "All of our operations have run normally, and this final approval ensures that our customers will continue to have the continuity of products and services that they have enjoyed in the past. It also enables the company to pursue its future business strategies in an orderly manner."